Bill Whittle over at Pajamas Media had a great piece in his Afterburner segment this week. Calling statistician William M. Briggs The love of theory is the root of all evil The Best Sentence Ever, Whittle discusses how the love of the theory of Communism caused the deaths of well over 100,000 million people during the 20th century. The crux of his piece is that liberals, living in their world of theory and planning have no clue how the world actually works.

Just such liberal fatuousness was on display in Saturdays New York Times. The paper ran a 3,800 word piece bemoaning the fact that Apple Computer, the most valuable company in the world was short changing California (and the United States) on taxes. Somehow, the company, which employs over 20,000 people in the state is not doing its fair share. According to the Times, Apple, which is headquartered in Cupertino, California, could earn up to $46 billion this year worldwide and California is getting bilked. The Times states that Apple utilizes offices as close as Nevada and as far away as Luxemburg to shield itself from California and US taxes.

While the Times explicitly states that Apple is not responsible for Californias budget problems, in a piece Mark Antony would be proud of, it helpfully points out: Apple serves as a window on how technology giants have taken advantage of tax codes written for an industrial age and ill suited to todays digital economy. And if the subtlety makes the point too opaque, the Gray Lady makes it clear: The growing digital economy presents a conundrum for lawmakers overseeing corporate taxation: although technology is now one of the nations largest and most valued industries, many tech companies are among the least taxed

The message is clear. The fact that California is an economic basket case is Apples fault, (along with other high tech companies). It couldnt have anything to do with the fact that Californias budget grew by 40% from 2000 to 2010 while the population grew by a mere 13%. It couldnt have anything to do with the fact that the government has been chasing companies and jobs out of the state for decades with their regulatory straightjacket. It couldnt have anything to do with the fact that state employees, most supported by unions, earn an average salary of $68,000 (vs. a state average salary of $54,000) and total compensation in excess of $105,000. No, the problem is that Apple is legally taking advantage of the tax code to reduce the amount of money it pours down the bottomless pit known as Sacramento. That should be obvious to anyone.

The Times suggests that if Apple were not using these tactics its federal taxes would have been $2.4 billion higher in 2011. Assuming that Apple does half of its US work in California, that figure suggests that Apple would have paid approximately $300 million dollars more in California taxes than it actually did. Obviously that would have fixed the states $25 billion shortfall.

I’d venture that the NYT has readership plus newspaper distribution in California. Are they paying California taxes? Is the US itself in a deficit? Then they should shut up until the pay up based on their logic.

All California has to do is cut corporate taxe rates enough to compete with other places, and Apple will locate there.”

So California cuts their rates today, a company invests millions of dollars to build a facility and then those wonderful one party politicians out there get together and decide they’ve changed their mind. I see absolutely no reason to believe any of them and wouldn’t risk it.

Re Apple and Texas. Believe Travis County worked out all the sticking points and they have a done deal for huge tax breaks provided they invest almost $300M and hire 3600 people over the next 10 years or so. Of course this new facility will use alternative energy so we’re just moving more of San Francisco to Austin.

14
posted on 05/02/2012 4:43:13 PM PDT
by Grams A
(The Sun will rise in the East in the morning and God is still on his throne.)

Apple is just another Kali enabler by staying. Every business in Kali that is making taxable income should move so to help the state come to reality faster. Consider it as an act of tough love for voters used to voting for liberal pols.

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